Who Optimizes SG&A Costs Better? Eaton Corporation plc or AerCap Holdings N.V.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive landscape of corporate finance, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Eaton Corporation plc and AerCap Holdings N.V. have demonstrated contrasting strategies in optimizing these costs. From 2014 to 2023, Eaton consistently maintained higher SG&A expenses, averaging around 3.5 billion annually. However, AerCap's expenses were significantly lower, averaging approximately 338 million, reflecting a leaner operational model.

A Decade of Financial Strategy

Eaton's SG&A expenses peaked in 2014, while AerCap saw a notable increase in 2023, reaching its highest at 464 million. This suggests a strategic shift or expansion in AerCap's operations. Despite Eaton's higher expenses, their trend shows a slight decrease, indicating efforts to streamline operations. In contrast, AerCap's expenses have grown by about 55% since 2014, possibly reflecting strategic investments or market expansion.